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Message  of  the 
Conf  Pam  12mo  #96 


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MESSAGE  OF  THE  PRESIDENT 


To  the  House  of  Representatives  : 

I  herewith  transmit  the  reports  made  by  the  heads  of  the 
Treasury  and  War  Departments,  in  response  lo  your  resolution  of 
the  6th  instant,  making  various  enquiries  relative  to  the  subject 
embraced  in  the  act  of  6th  February,  1864,  entitled  "a  Biil  to  im- 
pose regulations  upon  the  foreign  commerce  of  the  Confederate 
States,  to  provide  for  llie  public  defence.'' 

The  imj)ortance  of  this  subject  induces  me  to  present,  at  some 
length,  my  views  upon  the  policy  of  the  law,  and  upon  its  effects  as 
developed  by  experience. 

The  first  section  of  the  law,  (which  was  passed  at  the  fourth 
session  of  the  first  Congress  and  was  the  expression  of  its  ma- 
tured Judgment.)  prrhibits  the  exportation  of  the  principal  products 
of  the  Confederate  States,  except  under  uniform  regulations,  and 
the  reason  for  this  prohibition  is  expressed  in  the  preamble  to  be 
this  ;  "that  the  condition  of  the  contest  demands  that  the  Confed- 
erate Statfs  should  call  into  requisition,  whatever  resources  of  men 
and  money  they  have  for  the  support  of  their  cause." 

The  fifth  section  of  the  law  indicated  that  the  purpose  of  Con- 
gress ii  granting  ])owcr  to  nllow  or  refuse  permission  to  export  the 
produce  t)f  our  country,  was  to  enforce  a  return,  in  whole  or  in 
part,  of  the  value  of  the  producr  exported  'in  jhiiitary  or  other 
su)»]>lies  for  the  public  service." 

But  a  full  undcrstanding'of  the  policy  of  your  predecessors,  can 
be  at'ainod  orly  liy  taking  into  cr)iisid(:ratio?i,  another  act  passed 
on  tlie  same  day,  flml  entitled  "an  act  to  p'ohibit  the  importation 
of  luxuries  or  <;)  articles  not  necet^sarie.s.  or  of  common  use."' — 
This  last  mentioned  act  absolutely  prohibited,  during  the  pending 
war,  the  importation  of  any  articles  not  necessary  for  ihc  defence 
and  subsistence  of  the  country  ;  and  among  those  excluded  from 
importation  wer^  wines,  spirits,  Jewelry,  cigars,  and  all  the  finer 
fabrics  of  cotton,  flax,  wool  or  silk,  as  well  as  all  other  merchan- 
dise serving  only  for  the  indulgence  of  luxurious  habits. 

In  a  word,  the  two  acts  were  an  exercise  of  the  power  to  regu- 
late commerce  so  as  to  make  it  su»  servient  to  the  success  of  our 
struggle,  by  prohibiting  the  importation  or  exportation  of  rncr- 
ehandise  or  produce  for  any  other  purpose  than  National  defence 
nnd  necessary  s'lbsistence,  until  these  vital  objects  should  he  placed 
beyond  the  reach  of  danger.  The  two  laws  form  one  common  system 
and  they  should  be  so  regarded  in  considering  the  propriety  of  the 
repeal  or  modification  of  either. 

When  signing  my  approval  of  these  acts,  I  considered  them  as 
measures  eminently  wise  and  proper,  and  as  well  adapted  to  reme- 
dy existing  evils.     Complaints  were  rife  through  our  country  that 


its  foreii^n  commerce  was  almost  exclusively  in  the  bauds  of  alieus, 
that  our  cotton,  tobscco  and  naval  stores  were  being  drained  from 
the  State?,  and  th?t  we  were  receiringin  return  cargoes  of  li(iuors, 
wines  and  articles  of  luxury  ;  that  tlic  imported  goods,  being  held 
in  few  iiands  and  in  limited  quantities,  were  sold  at  prices  ?o  exor- 
bitant that  the  blockade,  junneis,  after  purchasing  fresh  cargoes  of 
cotton,  still  retained  large  sums  of  Confederate  money,  which  they 
invested  in  gold  for  exportation,  and  in  foreign  exchange  ;  and 
that  the  whole  course  of  the  trade  had  a  direct  tendency  to  im- 
poverish our  country,  demoralize  our  people,  depreciate  our 
currency,  and  enfeeble  our  defence.  Congress  believed  these  com 
plaints  well  founded,  and  in  that  belief  1  fully  concurred.  Note 
doubted  that  a  n-medv  was  desirable,  and  your  present  enquiries 
seek  information  in  relation  to  the  efficiency  of  the  remedy  pro- 
,vided  by  the  legislation  then  devised,  as  developed  by  actual  ex- 
perience. 

My  convicfion  is  decided  that  the  eflect  of  the  legislation  has 
been  salutary,  that  the  evils  existing  prior  to  its  ado])tion  have 
been  materially  diminished,  and  that  the  repeal  of  the  leii;islation 
or  any  modification  impairing  its  efficiency,  woald  l)e  calamitous. 
This  opinion  is  shared  by  every  Executive  Department  that  has 
been  entrusted  with  the  execution  of  these  laws  and  TCgulations, 
and  thus  enabled  to  form  a  judgment  based  on  observation  and  ex- 
perience. 

The  propriety  and  justice  of  a  claim  on  the  port  of  the  govern- 
ment that  a  share  of  all  the  vessels  engaged  in  the  blockade  tiade, 
should  be  I  eld  subject  to  its  use  for  the  benefit  of  the  whole  peo- 
ple,, was  bo  obvious  that  even  before  the  legislation  of  Congress, 
few  owners  refused  to  place  at  its  disposal,  one-third  of  the  ton- 
nage, both  outward  and  inward,  for  the  importation  of  supplies 
and  the  exportation  of  the  produce  necessary  to  pay  for  them.  On 
the  passage  of  the  lavs,  it  was  deemed  proper  to  increase  the  de- 
mand of  the  government  to  one-half.  This  decision  was  based  not 
only  on  the  consideration  that  the  government  was  burthened  witii 
the  entire  expense  of  defending  tl  e  ports  of  entry,  but  on  the  fur- 
ther reasons  that  the  enormous  gains  of  the  commerce  were  mo- 
nopolisfd  by  foreigners,  free  to  engage  in  commerce  at  their  pleas- 
ure while  our  citizens  were  engrossed  in  the  sacred  duty  of  de- 
fending their  homes  and  liberties,  and  therefore  unable  to  compete 
for  the  trade.  It  \vas  foreseen  that  this  iiicrea.'=e  would  bo  resisted, 
and  in  a  message  on  the  subject,  addressed  \>y  me  to  tiie  House 
of  Representives  on  the  lOth  June  last,  it  is  stated  that  "  for  some 
weeks  after  the  adoption  of  these  regulation.^,  strenuous  efforts 
were  made  by  parties  interested  in  the  business,  to  induce  a  relax- 
ation of  ihe  regulations.  Many  of  the  vessfls  remained  unemploy- 
ed on  the  allegation  of  the  owners  th^jt  the  terms  imposed  by  the 
regulations  were  so  onerous  as  to  render  impossible  the  continu- 
ance of  the  business.  The  regulations  reniainci  unclinnged,  for  I 
was  satisfied  from  an  examination  of  the  subject,  that  this  complaint 
was  unfounded  and  that  the  withdrawal  of  the  vessels  was  an  ex- 
periment, by  a  combination  among  their  ownere,  on  the  firmness  of 
the  government.     The  result  proved  the  correctness  of  this  view, 


for  after  various  attempts  to  obtain  increased  advantages,  the  ves- 
sels resumed  their  voyages,  their  number  has  been  largely  increas. 
ed,  the  ability  to  export  produce  and  import  supplies  en  govern- 
ment^ account  has  been  developed  to  a  greater  extent  than  had  been 
anticipated,  and  ihe  credit  of  the  government  has  been  so  improv- 
ed  in  foreign  markets  that  the  quotations  for  its  loan  have  rapidly 
advanced." 

In  the  same  message  it  was  also  stated  that  "  among  the  efforts 
made  to  induce  a  change  of  the  regulations,  was  a  warning  given  to 
officers  of  the  government,  that  the  owners  of  vessels  could  make 
better  bargains  with  the  (Tovernui-s  of  States  than  with  the  Confed- 
erate Government,  and  that  if  the  regulations  were  not  relaxed  in 
their  favor,  they  would  transfer  their  vessels  to  \te  Executives  of 
the  several  states,  and  thus  withdraw  them  from  the  operation  of 
the  regulations."  • 

^  Reverting  now  to  the  precise  enquiries  contained  in  year  resolu- 
tion, I  answer — 

^  1st.  That  no  restriction  whatever  has  been  placed  on  the  exer- 
cise of  the  right  of  any  Confederate  State,  to  export  on  its  own 
account,  any  of  the  articles  enumerated  in  the  act  entitled  "An  act 
to  i^naposo  regulations,  &c.,"  approved  6th  Fel»ruary.  1S64. 
^  Each  State  not  only  exports  whatever  it  pleoses  hut  the  oi)liga- 
tion  imposed  on  private  individuals,  lo  bring  bade  into  the  country 
necessary  supplies,  equal  in  value  to  one-half  of  the  prodiice  ex- 
ported, is  not  extended  to  the  States.  Thev  are,  in  these  respects, 
on  a  footing  of  absolute  equality  with  the  Confederate  govern- 
ment. 

I  am  aware  that  complaints  have  been  made  of  the  effect  of  tliese 
regulations  by  the  Governors  of  some  of  the  States ;  but  their  ob- 
jections aie,  in  my  judgment,  without  foundation. 

It  is  not  denied  r, y  any  of  them,  tliat  when  a  State  purchase?  a 
vessel,  it  is  left  under  the  exclusive  control  of  the  State  authori- 
ties, and  that  the  Confederate  government  claims  no  share  of  the 
outward  or  inward  tcnntige.  It  is  also  admitted,  that  when  the 
States  purchase  or  chaiter  any  part  of  a' vessel  not  exceeding  one' 
half,  the  C.  S.  Go vernn, cut  does  not  interfere  with  their  enjo^m'ent  of 
the  portion  so  purchased  or  chartered,  and  conliijcs  i  self  to  exactin'^ 
frotm  the  private  owuei-,  the  use  of  that  half  not  conveyed  to  the 
State  ;  but  the  complaint  is.  that  the  Confederate  government  will 
not  further  consent  to  yield,  for  the  benefit  of  a  single  State,  any 
part  of  that  moiety  of  the  tonnage  of  each  vessel  which  it  has  se- 
cured under  the  regulations  for  the  common  use  and  benefit  of  all 
the  States  of  which  it  is  agent. 

By  the  regulations,  as  now  existing,  half  the  tonnage  of  all  the 
vessels  engaged  in  the  trade,  has  bcc'n  conveyed  to  the  use  of  the 
Confederacy.  Why  should  a  single  State  he  allowed  to  take  for 
its  seperate  use,  from  the  Confederacy,  any  part  of  this  half?  Is  it 
not  enough  that  the  remaining  half  is  left  open  for  purchase  or 
charter  by  the  State  ? 

It  is  plain  that  a  state  and  the  owner  of  a  vessel  can  have  no 
motive  for  contracting  in  such  manner  as  to  diminish  the  tonnage 
claimed  by  the  Confederacy,  unless  for  a  profit  that  is  to  begfiared 


by  both.  Any  concession,  therefore  made  on  this  point,  is  in  effect 
the  loss  of  an  interest  which  is  the  comm'^n  proj)erty  of  all  the 
states,  for  the  joint  gain  of  a  single  state  and  of  a  private  capitalist 

Again.  The  army  in  the  field  is  the  army  of  the  Confederacy, 
which  is  charged  with  the  duty  of  supplying  it  with  clothing,  snl)- 
sistence  and  munitions  of  war.  The  performance  of  this  duty  de- 
mands the  most  strenuous  exertions,  and  the  command  of  all  the 
resources  that  can  be  reached.  Any  diminution  of  our  command  of 
those  resources,  by  a  modification  of  the  existing  legirflation,  might 
lead  to  disastrous  consequences.  Under  our  present  arrangments, 
■we  are  barely  able  to  supply  to  our  brave  defevders  a  moderate 
share  of  those  comforts  which  are  indispensable  to  their  efficiency. 
As  long  as  privations  are  endured  by  all  alike,  there  is  a  noblo  and 
patriotic  emulation  in  the  display  o'  cheerlul  fortitude  in  enduring 
them.  1>ut  if  the  common  supply  now  distributed  among  all  is  di- 
minished, for  the  purpose  of  er.abling  any  one  state  to  add  to  the 
supplies  furnished  her  own  troops,  the  effect  will  be  pernicious  to 
an  extent  that  car  scarcely  be  appreciated  in  advance.  I  lea^eit  to 
others  to  imagine  the  state  of  feeling  wh^ch  would  ensue,  if  the 
sold  ers  of  tlie  seaboard  states  were  to  be  found  amply  supplied 
with  all  necessaries  and  comforts,  standing  side  by  ^■ide  with  the 
troops  of  interior  states,  who  would  be  deprived  of  a  part  of  what 
they  now  receive,  in  cons(quence  of  a  diminution  of  our  present 
means  of  providing  for  all  alike,  if  to  this  it  shoulo  be  answered 
that  the  iLterior  states  could  enjoy  the  same  advantages  as  the  sea- 
hoard  states,  by  sending  agents  to  the  ports  to  represent  th^m,  thus 
placing  all  on  an  equal  looting,  the  leply  is  obvious.  '!  he  result 
would  then  l)e,  to  bring  all  the  S  a'es  back  to  the  same  condition 
in  wMcli  they  now  are.  that  is  to  say,  each  po'-sessing  its  fair  stare 
of  the  advantages  derived  from  the  tonnage  used  by  the  Confeder 
ate  government. 

It  a}»pears  tome  that  any  change  in  the  present  regulations  so  as 
to  affect  the  rights  of  the  Confederate  government  must  necessarily 
be  either  useless  or  mischievous  :  useless,  if  no  advantage  is  to  be 
gained  by  any  one  State  over  the  others:  mischievous  in  the  ex- 
treme, if  such  an  advantage  is  to  be  the  effect  of  the  change. 

It  has  been  suggested  that  there  are  many  articles  required  by 
the  people  of  the  different  states,  which  can  only  be  obtaimed 
through  the  aid  of  their  governments,  and  that  the  efforts  of  the 
Confcderaie  government  are  confined  exclusively  to  the  supply  of 
the  needs  of  the  army.  This  is  true.  But  one-half  of  all  the  ton- 
nage of  private  owners  remains  open  to  employment  by  the  states 
for  the  purpose  suggested,  though  perhaps  at  somewhat  greater  cost 
than  would  be  charjjed  if  they  were  permitted  to  use  the  portion 
reserved  f'cr  the  Confedcrary.  B'lt  1  repeat,  that  there  is  no  jus- 
tice appaient  in  the  demand  that  all  the  states  should  sacrifice  a 
common  right  for  the  pn  fit  of  a  single  state:  nor  in  diminishing 
the  necessary  comforts  of  the  soldier  for  the  benefit  of  those  who 
remain  at  home.  It  is  also  competent  for  each  state  to  purchase 
vessels  for  its  own  use,  or  to  purchase  shares  in  common  with  one 
or  more  other  states,  for  the  introduction  of  supplies  necessary  for 


the  people,  without  encroaching  on  the  means  used  by  the  Confed- 
eracy for  supplying  the  army. 

2d.  Upon  the  second  question,  whether  the  regulations  have 
caused  any  diminution  in  the  number  of  vessels  engaged  in  foreign 
commerce,  the  report  of  the  Secretary  of  the  Treasurv  gives  such 
information  as  satisfactorily  establishes  the  reverse  to  be  the  case. 
In  addition  to  the  statements  made  by  him,  derived  from  official 
returns,  the  Secretary  of  War  reports  that  many  new  steamers  are 
understood  to  be  on  the  way  to  engage  in  the  trade,  notwithstand- 
icg  the  impression  which  prevails  that  the  stringency  of  the  block- 
ade is  constantly  increasing. 

The  number  of  vessels  which  arrived  at  two  ports  of  the  Confed- 
eracy between  the  1st  November  and  6th  December  was  forty-three, 
averaging  more  than  ore  per  day,  and  indicatins:  no  check  in  the 
tiade.  A  further  and  conclusive  proof  that  the  prolits  of  this  com- 
merce under  present  regulations  are  sufficiently  tempting  to  secure 
its  increase,  is  aflforded  by  the  fact  that  the  shares  of  the  companies 
engaged  in  it  have  greatly  advance i  in  value.  The  shares  of  one 
company,  originally  of  $1000  each,  were  selling  in  July  last  for 
$20,000  each,  and  now  command  $30,000.  Those  of  another  com- 
pany have  increased  in  the  ?ame  period  from  $2500  to  $6000 :  and 
all  exhibit  a  large  advance. 

3rd.  Your  third  enquiry  seeks  information  whether  the  legisla- 
tion and  regulations  have  been  beneficial  or  otlierwise  in  their 
effect  on  the  success  of  our  arms  and  the  supply,  of  means  necessary 
to  the  pul)lic  defence. 

My  opinion  has  already  been  indicated  on  this  point,  and  the  re- 
ports of  tlie  Secretaries  are  decided  in  the  expression  of  their  o*n 
convictions  of  the  wisdom  of  the  law.-,  and  the  beneficial  f-ffecls 
produced  by  them,  in  connection  with  the  regulations  established 
for  giving  them  effect. 

These  laws  and  regulations  have  enabled  the  Government  not 
only  to  provide  supplies  to  a  much  greater  extent  than  formerly, 
and  to  furnish  the  means  for  meeting  the  inst^ilmentson  its  foreign 
loan,  but  to  put  an  end  to  a  wasteful  and  ruinous  contract  system, 
y  which  supplies  were  obtained  before  Congress  determined  to  ex- 
crcise  control  over  the  imports  and  exports. 

Instead  of  being  compelled  to  give  contractors  a  large  profit  on 
the  cofctof  their  supplies,  and  to  make  pa.^ment  in  cotton  in  our 
ports  at  six  pence  per  pound,  we  now  purchase  supplies  abroad  by 
our  agents,  at  cost  in  the  foreign  msrket,  and  pay  there  in  cotton, 
which  sells  at  a  net  price  of  twenty-four  pence  per  pound.  When 
all  the  elements  of  the  calculation  are  taken  into  consideration,  it  is 
by  no  means  an  exaggeration  to  say,  that  one  hundred  ba'es  of  cot- 
ton exported  by  the  government  will  purchase  abroad  the  same 
amount  and  value  of  supplies,  that  six  hundred  bales  would  pur- 
chase, delivered  to  conti-actors  in  the  Confederacy  A  reference  to 
the  report  of  the  Secretary  of  the  Treasury  shews,  that  of  11,796 
bales  of  cotton  shipped  since  first  July  last,  but  1272  were  lost;  not 
(l«ite  eleven  per  cent.  If  this  be  taken  as  a  fair  average,  and  it  is 
believed  to  be  so,  out  of  six  hundred  bales  of  cotton  exported,  five 
hundred  and    thirty  fonr  would   arrive  abroad,  and   yield    at  forty 


pound;?  per  bale,  .£21,360,  while  the  same  six  hundred  bales  delir- 
ered  on  payment  at  a  home  port,  at  six  pence  per  pound,  would  jield 
les9  til  an  iOOOO. 

There  are  other  advantages  derived  from  bnying  abrond,  rather 
tlian  contracting  with  l>lockade-r-unners,  of  no  small  magnitude,  but 
the  foregoing  sjattmont  will  show  the  enormous  profits  that  were 
made  !)y  them  when  the  government  was  forced  to  contract,  instead 
of  puichasins:  for  itself,  and  will  suggest  a  nr.otive  for  the  strenuous 
efforts  they  have  not  cea?ed  to  make,  to  get  rid  of  the  regulations 
and  procure  a  change  in  the  policy  of  the  government.  It  is  to  the 
law  }  nd  regulations  that  the  govcrnmert  owes  its  ability  to  com- 
mand freight  room,  and  then  buy  and  sell  for  itself,  instead  of  be- 
ing forced  to  make  crntracts  so  extravagant  as  those  above  descri- 
bed. It  requires  little  sagacity  to  perceive  that  with  temptation  so 
great,  the  ownei  s  of  vessels  would  spare  no  pains  fo  obtain  contracts 
from  the  several  states,  if  allowed  to  do  so  by  law,  with  the  view 
of  again  withdrawing  from  our  use  as  far  as  possible  the  tonnage 
of  their  vessels,  and  tlius  compelling  a  return  to  the  ruinous  con- 
tract system. 

The  reports  of  the  Secretaries  will  fully  inform  you  of  the 
quantity  and  nature  of  the  supplies  obtained  by  the  government 
under  the  present  system,  and  their  importance  to  the  national  de- 
fence will  be  perceived  at  a  glance. 

4th.  To  the  fourth  enquiry,  whether  experience  has  suggested 
the  necessity  of  the  repe.'jl  of  said  act,  or  any  modification  or  amend- 
ment of  its  provisions,  the  foregoing  remarks  woidd  seem  to  fur- 
nish a  sufficient  answer.  But  1  conclude,  by  renewing  the  expres- 
sion of  my  conviction,  that  the  result  of  any  legislation  checking 
or  diminishing  the  control  now  exercised  by  the  government  over 
our  foreign  commerce,  would  be  injurious  tothe  public  interest,  and 
would  ensure  the  renewal,  in  aggravated  fol-m,  of  the  evils  which 
it  was  the  purpose  of  your  predecessors  to  remedy  by  the  laws  now 

in  force. 

JEFFERSON  DAVIS. 

Richmond,  Va.,  Dec.  20,  18G4. 


RESPONSE  OF  SECRETARY  OF  WAR, 

To  the  Resolutions  of  the  House  of  Representatires,   adopted  Dec- 
ember Gth,  1864,  respecting  operations  under  tbe  act  of 
6th  February,  U64. 


Confederate  States  ok  America,  ) 

Wau  Department,  / 

Richmond,  December  lO,  ISGl.      ) 


To  the  President 


I  have  the  honor  to  submit  my  answer  to  the  enclosed  resolutions 
of  the  House  of  Rcresentatives,  tran^miited  by  you  to  mo  (Re^iO- 
lutions  adopted  on  the  Gth  inr^t.,  in  relation  to  the  act  of  Gth  Feb- 
ruary, 18G4.) 

1.  The  tenth  clause  of  tlie  rcj^ulatious  established  under  the 
act  of  Februnry  Gth,  1804,  is  as  foUows  : 

"Nothinj:^  in  these  regulations  shall  be  so  construed  as  to  conflict 
with  the  proviso  of  the  law  which  declares, 'that  nothing  in  this  act 
shall  be  construed  to  proliibit  the  Confederate  States,  or  any  of 
them,  from  exporting  any  of  tlie  ai  tides  li'irein  enumeratod  on  their 
own  account,"  nor  shall  a  l)ond  be  re<iiiired  ol"  a  State  in  any  case" 

In  regulating  this  clause,  no  restriction  has  been  imposed  upon 
any  State,  and  no  State  has  been  asked  to  give  a  bond,  as  required 
of  all  private  owners.  All  vess.  Is,  excejjt  those  owned  exclusive- 
ly by  States,  are  subject  to  the  ''Regulations,''  ai  d  compelled  to 
carry  out  cotton  and  bring  in   a  supply  for  the  C.  S   Government. 

If  a  State  should  be  a  suliscriber  to  one  of  the  joint  stock  com- 
panies for  running  the  blockade,  or  in  partner,«ihip  with  private  in- 
dividuals in  a  ve-isel,  such  vcspel  should  be  held  as  subject  to  the 
"Regulations.  "'  But  all  vessels  and  cargoes  belonging  to  States 
are  held  to  be  entirely  exempt,  and  no  restriction  attaches  to  them. 

2.  The  number  of  vessels  engaged  in  running  the  blockade  has 
steadily  increased  since  the  establishment  of  the  '-Regulations,'' 
and  is  now  larger  than  at  any  time  liefore.  Many  new  steamers 
are  understood  to  he  on  the  way  to  engage  in  the  business  ;  this, 
too,  thoufjjh  ihe  siringency  of  the  blockade  is  supposed  to  be  con- 
stantly augmenting. 

8.  The  "Regulations"  have  been  beneficial  to  the  C.  S.  Govern- 
ment in  hirnishing  the  means  abroad  to  purchase  supplies  and  mu- 
nitions of  war,  and  the  tonnage  required  to  transport  them  into  our 
por<s. 

Prior  to  the  passage  of  the  Act,  owners  of  steamers,  upon  the 
application  of  the  Secretary  of  War,  conceded  to  the  (.■  S.  Gov- 
ernment, a  portion  of  tonnage  for  outward  and  inward  cargoes, 
but  the  Act  of  Consriess  and  the  '•Recrulatioas"  under  it  were  ne- 


8 

cessary  to  secure  uniformity,  and  compel  such  persons  as  were  re- 
luctant to  make  the  concession. 

The  annexed  statement  showing  (1)  quantity  of  cotton  exported 
for  the  C,  S.  (rovcrnment,  and  its  estimate  ralne  ;  (2)  the  Icadinf:^ 
articles  imported,  exhibits  some  of  the  substantial  advantages  thut 
have  accrued  to  the  C.  S.  Government. 

Our  agents  abroad  represent  that  the  Act  and  "Regulations" 
have  been,  in  the  highest  degree,  beneficial  in  appreciating  the 
public  credit  and  enabling  them  to  secure  additional  supplies  at 
reduced  rates. 

4.  It  would  be  exceedingly  inexpedient  to  repeal  the  Act,  and 
experience  has  not  suggested  to  me  any  modificarion  or  amend- 
ment, as  necessary.  On  the  contrary,  tlie  Act  and  "Regulations" 
are  just  becoming  well  understood,  and  the  0.  S.  Government  is 
appreciating  more  and  more  the  benefits  resulting  from  them.  The 
duty  attaches  peculiarly  to  the  C.  S.  Government  to  provide  sup- 
plies and  munitions  of  war  for  the  public  defence ;  and  it  is  better, 
in  every  respect,  that  the  duty  should  be  wholly  performed  by  the 
C.  S.  Government,  especially  when  in  devolving  any  portion  of  it 
upon  the  States,  ihe  means,  to  that  extent,  are  withdrawn  from  the 
C.  S.  Government.  If  a  concession  is  made  to  the  States  to  char- 
ter vessels,  and  if  such  vessels  be  exempt  iVom  the  operation  of 
the  "Regulations,"  each  State  becomes  a  competitor'  with  every 
other  State,  and  the  C.  S  Government.  The  uniformitv  contem- 
plated by  the  Act  of  Congress  will  be  destroyed  Competitive 
charters  will  be  made,  not  only  to  secure  tlie  sliip-,  but  to  secure 
the  entry  to  particular  ports  If  one  State  undertakes  to  supply 
its  troops,  every  other  State  will  be  compelled  to  undertake  the 
same  duty.  Unequal  provision  lor  the  soldiers  of  diffoicnt  States 
will  create  jealousy  and  dissatisfaction  among  them,  and  ultimately, 
the  C.  S.  Government  will  have  to  rciml)iirse  the  Sta'os.i  The  com- 
petition of  tlie  States  with  oacli  other,  and  with  the  Confederate 
Slates,  would.  1  loar,  extend  to  transportation  over  the  railroads, 
when  it  was  inadequate  to  the  delivery  at  the  seaports  of  cargoes 
for  ail  vessels  particularly  owned  or  chartered  by  them.  Agencies  at 
home  would  be  largely  multiplied,  which  would  aggravate  the  com- 
petition in  every  form.  It  may  be  safely  assumed  that  all  vessels  will 
run  under  the  '  Regulations,"  carrying  cotton  and  bringing  in  sup- 
plies for  the  C  S.  Government,  unless  they  can  make  more  advan- 
tageous arrangements  with  particular  States.  Whatever,  therefore 
is  gained  by  such  arrangements  will  accrue  to  individuals,  and  will 
be  so  much  subtracted  from  the  C.  S.  Government. 

The  "Regulations"  are*general  in  their  character,  and   seem   to 
justify,  indeed  to  call  for,  the  expression  of  these  views. 
1  have  the  honor  to  be, 

Very  respectfully,  jonr  obedient  servant. 

JAMES  A.  SEDDON, 

Secretary  of  War. 


t*j 


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Packapes  I<eather. 

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Ut        CO  1 
O        <Ji   1 

Pigs  Lead. 

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^    -S      Packages  Saltpetre. 

Packages  Revolvers,  i 

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Pkg's  Boots  &  Shoes', 
Bales  Blaokets.        || 

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Piickagcs  Mefit 

Cases  Rifles. 



Packages  Coffee. 

-  -      --                - 
Cnnnon. 

Packages  Copper. 

Caoks  Lead, 

Cases  Swnrds. 

fe 

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to      V 

en 

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£ 

£    S 

Coils  Rope. 

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^  IS 

Packages  Medicine. 

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10 


SHIPME^''TS  of  Cotton  since  \st  March,  1864. 

Account  Nitre  anH  Mitiing  BKrcau,  873 

'<         Meiiical  Department.  328 

«'         Kngiieer  Department,  57 

"         Csmmissary  Department,  1,248 

«'         Quartermaster's  Department,  1.829 

"          Ordnance  Department,  1,776 

To  say  War  Dopart'.!)ent,  6,111 

"     Navy  Department,  4,S6l 

"     Treasury  Department,  12,840  and  one-half  of  Contract 

Steamers,  6,974—3,487,  16,327 


Dales  :  27,299 


Bale?,  27,299  at  £40  averajie  ;  value  £1,091,960  at  ^1  S5,         >H5,296.006 
p]qual  in  currency  at  25  to  1,  *132,400,150 


li 


COMMUNICATION   OF  SECRETARY  OF  TREASURY. 


Treasury  Department,  C.  S.  A. 
Richinoud,  Dec.  12,  18G4. 


To  the  President  : 

Sir  : — 1  have  the  honor  to  submit  the  following  reply  to  the  en- 
quiries contained  in  the  resolutions  of  the  House  of  Representa- 
tives, of  the  5th  inst,  in  relation  to  the  foreign  trade. 

1.  Whether  any,  and  what  restrictions  have  been  imposed  upon 
the  exercise  of  the  right  of  the  Confederate  States,  or  any  of  thena, 
to  export  on  their  own  account,  any  of  the  articles  enumerated  in 
the  Act  entitled  '  An  Act  to  impoee  regulations  upon  the  foreign 
commerce  of  the  Confederate  States  to  provide  for  the  public  de- 
fence,'^approved  6th  February,  1864." 

No  restrictions  whatever  have  been  imposed  upon  the  exorcise 
of  this  right  by  the  States-  The  lOih  article  of  the  Regulations, 
adopted  in  pursuance  of  the  Act  of  6th  February,  provides:  "That 
nothing  in  these  regulations  shall  be  construed  to  confli't  with  the 
proviso  in  the  5th  section, '  that  nothing  in  this  Act  shall  be  con- 
strued to  prohibit  the  Confederate  States,  or  any  of  them,  from 
exporting  any  of  tke  articles  herein  enumerated,  on  their  own 
account.' " 

By  the  1st  and  2d  articles  of  the  Regulations,  it  is  provided  that 
vct^sels  belonging  to  private  parties,  shall  carry  one-half  the  cargo, 
both  outward  and  inward,  on  account  of  the  Confederate  States. 

It  has  sometimes  been  supposed,  that  this  provision  operates  as 
a  restriction  upon  the  freedom  of  action  of  the  .'*tates.  That  if  a 
State  acquire,  by  purchase  or  charter,  the  use  of  one-fourth  of  a 
stearner,  tho#Confederate  States  should  reli  quisii  an  equal  propor- 
tion of  the  moiety  claimed  under  the  Regulations,  and  reduce  the 
sliare  reserved  for  its  use  to  one-fourth. 

This  Department  does  not  concur  in  that  opinion.  It  is  held 
that  a  vessel  engaging  in  this  trade,  charters  one  moiety  to  tiic 
Government,  and  has  no  power,  while  she  continues  therein,  by  a 
sale  or  another  charter,  to  deprive  the  Government  of  the  use  of 
that  moiety.  The  exercise  of  such  a  power  would  be  incompatible 
with  the  design  of  the  Act  of  February  Gth.  and  ia  direct  viola- 
tion of  the  regulations  made  in  pursuance  thereof.  It  would  be 
impossible  for  the  Government  to  secure  the  use  of  any  portion  of 
a  vessel,  if  the  owner  was  permitted  thus  to  alienate  it  at  will. 
Nor  would  it  be  consistent  with  the  equality  to  be  observed  among 
the  States,  in  matters  of  common  interest,  that  this  should  be  con 
ceded.  The  moiety  reserved  bythe  Confederate  States,  is  for  the 
use  and  benefit  of  all  the  States  without  distinction.  The  cotton  ex- 
ported is  common  property  ;  when  sold,  the  product  is  nearly  all 
clear  gain  ;  tlie  supplies  brought   back  in  return,  add  little  or  no- 


12 

tliiug  to  the  expenditures  of  the  j^overnment,  and  are   distributed 
among  the  troops  of  all  the  states  indiscriminately. 

But  when  any  part  of  tliis  moiety  is  transferred  to  one  state,  it 
operates  as  a  relinquishnicnt  of  tli(.^  share  of  each  of  the  others  for 
the  )>cneHt  of  that  one.  The  i>art  thus  ac<|uired,  is  then  used  to 
supply  the  troops  of  that  state  only  ;  and  as  these  supplies  are  never- 
theless paid  for  by  the  Coafederatc  States,  it  follows  tliat,  besides 
makini,^  this  valuable  concession,  those  from  whom  it  is  obtained, 
are  drawn  therel)y  into  an  unnecessary  cxponditure.  In  other 
words,  in  tlic  one  case  the  troops  of  all  thoi  Sutrs  participate  in  the 
benefit,  and  without  cost  to  any  ;  in  the  other,  tlie  benefits  are  con- 
fined to  the  troops  of  one  state,  and  all  tliC  others  contrilmteto  tlie 
cost,  and  without  any  reduction  being  made  for  the  profits  on  tho 
outward  cargo. 

2.  "Whether  tlie  regulations  made  under  the  firsts-^ction  of '-aid 
Act,  have  caused  any  diminution  in  tho  nnmt)or  of  vessels  cngnged 
in  foreign  commerce.'' 

The  regulations  were  adopted  on  the  7th  March,  and  the  lar:L'est 
liumber  of  arrivals  occurred  in  the  months  of  May  and  June  ensu- 
ing ;  during  which  period  forty- three  steamers  entered  the  ports  of 
Wilmington  and  Charleston.  Tho  prevalence  of  yellow  fever,  both 
in  the  Islands  and  in  our  own  ports,  caused  a  serious  interruption  ^o 
the  trade  during  thesummor  months;  but  the  abatement  of  the  epi- 
demic has  l)een  followed  l>y  the  itr  mediate  return  of  activity,  and 
from  the  1st  of  November  :o  the  6tb  of  December,  there  have  been 
lorty-three  arrivals  at  the  pons  above  nnraed. 

It  would  a]  pear,  therefore,  that  no  discouragement  has  bee  a 
given  to  the  trade  by  the  regulations. 

Ihis  conclusion  is  supported  liy  other  evidence.  The  freight  of 
5d  per  pf'und  in  gold,  paid  by  the  government,  is  nearly  equal  to 
$3  per  pound.  8o  that  the  freight  paid  for  carrying  out  600  bales 
of  cotton  for  the  government,  will  purchase  for  <he  vessel  lOOO 
bales  at  the  market  price;  and  the  great  profit  realized  on  these 
terms,  is  exhibited  in  the  enormous  price  commanded  in  the  mar- 
ket by  shares  in  all  the  blockade  stocks. 

3.  "  Whether  the  said  Act  of  Congress,  and  the  regurtitions  made 
under  its  authority,  have  been  beneficial  or  otherwise,  in  theii-  eflecj 
on  the  success  of  our  arms,  and  the  supply  of  means  necessary  for 
the  public  defence  ;  also,  whether  experience  has  suggested  the  ne- 
cessity of  the  repeal  of  said  Act  of  Gth  February,  or  any  modifica- 
tion or  amendment  of  its  provisions." 

Al}  impresf-iona  are  that  they  have  been  in  the  highest  degree 
beneficial.  Beiore  the  passage  of  the  Act,  vessels  were  reqniied  to 
devote  one  third  of  tlieir  tonnage  to  tht  use  of  the  government,  by 
authoritv  of  the  War  Departmen'.  The  principle  was  \he  same  os 
that  '-f  the  regulations,  and  the  statistics  tf  the  two  periods  have  not 
l^een  kept  separate  The  following  summary,  rmbracing  a  period 
of  abOi-t  twelve  months,  from  the  1st  of  November,  1  863,  to  the  SSth 
October,  1 8G4.  exhibits  the  results  attained  under  both.  These  de- 
tails aie  derived  trom  the  report  of  Col.  T.  L.  Bajne,  Chief  of  the 
Bureau  of  Foreign  Supplies  of  the  War  Department. 
The  leading  articles  imported  are  as  follows  . 


Lead  l,4i)0,000  ponnds. 

Saltpetre  l,8oO.OGO  pound?. 

Meat  6,200,000  pounds. 

(V;ffee  408,000  pounds. 

(>oots  and  ShocH,  4^:0,000  vn'^v^. 

niixukeU  292  000  pairs. 

Arms  13G,S32,  muskets,  rifles  and  carbines. 
Since  the  date  aliove  mentiored,  viz  :  tlie  25tli  of  October,  up  to 
tlie  G'h    of  Decemlier,   further  supplies  of  importance  have   been 
brought  in,  of  wliich  a  doiaikd  account  is  appended,  marked  A. 

Wlien  the  re.i?uhtions  were  first  atfoptcd,  each  Department  was 
charged  with  the  duty  of  managing:  its  own  exports  and  imports; 
but  cxpeicnce  indicated  the  propriety  of  corsobidatinir  these  oper- 
ations, and  plaring  the  whole  under  the  control  of  the  Treasury 
Department.  This  was  accordingly  dote  on  the  1st  of  July,  and 
from  that  ri ate  to  the  l:*t  of  Dtccmncr,  the  q:antitv  of  cotton  ex- 
ported, was  11,706  bales.  Of  »his  quantity  1272  bales  were  lost, 
and  10,522  bales  have  ar,  ivcd  ^afo  at  foreign  ports.  At  a  moderate 
computation  the  value  in  gold  is  £320,1)00  sterling,  or  $1,500,000; 
a  sum  capable  of  purchasing  supplies  of  the  value  in  currencv  of 
$45,000,000 

T'  0  ro:-ults  attained  appear  to  estal)lis!i  the  botiefi  -ial  character 
andeiTect  of  the  Act  of  February  6th,  and  th.'  regul-.tions  adopted 
in  pursuance  ihereof;  aud  I  am  strongly  of  the  opinion  neither 
"the  repeal  of  the  act,  nor  any  modification  or  amendnn  nt  of  its 
provisions,"  has  been  suggested  by  cx})erience  to  be  nrcessary. 

G.  A.  TRENHOLM. 
iSecrf  t?ry  of  Tre<i.-.tiry. 


14 


[A.] 

Cargoes  received  from,  abroad,  on  Government  Jlccount,  Jrom  25ih 
October  to  Gth  December,  1864— Por<  of  Wilmington,  jy.  C. 


1S64. 
Oct.  81. 


Hope, 

(captured  ) 


Little  Ilattie, 
City  of  Petersburg, 
Beatrice, 


Nov.  8 
6 


Talisuan, 
Armstrong, 


Ba  nghce. 


Nassau, 


NasiiaH, 
Nassau, 
Nafsau. 


r.ennada, 
Nassau, 


Nassau, 


15  cases  steel, 

8  casks  do. 

S  piecM  lignum  vita-, 

1  cask  glue, 
10  cases  ehamicals, 

8  casks        do 

8  kegs         do 

1  bag           do 

1  bo'tle  quicksilver, 

2  casks  tools, 
10  aapes  hose, 
64  coila  rope, 

3  trusses  twine, 
2  cases  belting, 
2  bales  canvas, 

.3    do    60le  leather, 
23  cases  lire,  tools,  <tc., 

4  cusks  tools, 

1  do    saws, 

2  cases    do   Ac, 

Nary. 

Ci 

<1 

(1 

12     do    tools,  screws,  &c.. 

(1 

S  casks        do. 

" 

5  bundles  iron. 

c< 

20  barrels  oil, 

" 

10     do.       alcohol. 

;> 

:}  cases  chemicals, 

" 

1  cask        do. 

" 

15  cases  machinery, 

Ordnance. 

35    do.     casrtng;:, 

" 

200  grate  bars. 

" 

6  bearers, 

" 

1  boiler. 

•' 

1  steam  chest, 

(( 

1  cask  picks. 

rntineer. 

!3  bales  blankets, 

Q.  M. 

1  <ase  samples. 

" 

11  casee  steal. 

N.  andM. 

^  bales  bagfriiig. 

Jno.  Seixas. 

1  bale  twine, 

" 

813  sacks  saltpetre, 

K.and  M. 

No  freight  on  government;  ac't. 

IW  grate  bars. 

Ordnance. 

10  bales  hosie'^y. 

Q.  M. 

S  cases  buntiBg, 

NaTT. 

1  bale  belting. 

"" 

1  case  screws,  &c., 

" 

1  case  mill  picks, 

'• 

1  case  wire  cUth  and  files. 

" 

4  cases  boots, 

•  ' 

Kl  barrels  provisions, 

" 

105    do.      b«ans. 

'< 

1  life  boat. 

<• 

6  bearers. 

Ordivance. 

222  cases  rifl«8. 

Ordnance. 

.399  barrels  beef, 

Navy . 

70  tierces    do. 

•* 

10  bales  bagging, 

Jno.  Slexas. 

70  coils  wire. 

Navy. 

1  life  bout. 

" 

8  bundles  rises. 

Q.  M. 

23  barrels  hardware, 

•> 

6  casea        d». 

" 

1  cask         do. 

(< 

29  «ases  rifles. 

Ordaance. 

1  life  boat. 

" 

840  boxes  soap. 

Vessel  acc't; 

»fi4  barrels  provisions, 

'• 

97  bags  coO'ee, 

•  i 

11  tiercts  do. 

" 

15 
Cargoes  received  from  abroad,  on   Government  Account — Continued. 


Banjhee, 


A.  K.  Fry, 


Blesheim, 

Little  natfie, 


0>ti  Dominian, 
Fmma  Henry, 


Vulture, 

Klla, 

(heacheil,) 


Virginia, 


3   j   Wild  RoVLV, 


4      Sta{, 


Nassau, 


Bermuila, 


Nassau,  (1st  trip,) 
Nassau, 


Halifax, 
Bermuda, 

Bermuda, 

Bermuda, 

Nassau, 


Bermuda  via  Nassau 


Bermuda  via  Nassau 


Bermudi  via  Nassau 


England.via  Berm'da 


32  barrels  coffee, 
7  easks, 

l.')  case*  shoes, 

173  boxes  bacon, 

T26  tierces  beef. 

loS  barrels  crushed  su?:ar, 
40  coils  rope, 
18  cases  stationery, 

6  barrels  sugar, 
1  cask  bams, 

No  government  freight. 

ir«  barrels  hardware, 
Kt cases  " 

7  bundles  vices. 
Is  bellows, 

V'j  anvils, 

43  barrels  alcoboJ, 

iji'  boxes  tin  plate, 

S  esses  stationery, 

>!  ca«ks  copper, 

4  barels  tallow, 

1  box  tools, 

Ldeinijoha  varnish, 

iilO  barrels  porb, 

130  sacks  saltpetre, 
.'■()  cases  shoes, 
rs  packages, 

l5 

1570  case.^  preserved  meat, 

10  bales  ffunny  olotli, 

200  bundles  iron  ties, 

r>  cases  crockerj , 

1'  cases  rifles. 
10      •'     ciirliii,.-i, 

1  cane  bi.'-.iKitli, 
1 17  barrels  poik, 
4-1  lier«»'s  beef, 
:<<•  pck.*.  horse  abi't  n  :i^ 
1  life  boat, 
'.".'.%  sa«k»/co(ree, 
1  case  spool  colt"n, 
'J.'l  cases  Knneld  iKIis. 


'22il  cases  shoes, 

|^  M 

H  bales  cloth, 

tiO    "     shirts, 

u 

1(!I     "    blanketc, 

<1 

•21     "     (lannel. 

li 

2    '■     hosiery, 

■' 

275  boxes  meat. 

Commissary. 

7() casks  bacon, 

«i 

5(10  bundles  iron  ties, 

8'J  hales  b8g;;iny;. 

, 

h  ca^es  thread. 

Ordnance. 

1  c»sk  buckles. 

U  cases  buttons. 

(t 

15ii  packages  lead, 

N.  and  M. 

"2  puncheons, 

1  hocshead  shocb, 

117  cases  bacon. 

Cotnmissary 

160  barrels  pnrk, 

7  casks  bridles, 

Ordnance. 

5  cases  «lectro  stalls, 

u 

9  eases. 

Navy. 

5  drums. 

•24  cases, 

IT    •' 

15    "    boots, 

Q.  M. 

^ 

7    "    womlleus, 

X 

rsn    •'     rifles, 

Ordnance. 

130  sacks  saltpetre. 

Nf.  and  M. 

T>  tons  pig  ir»n. 

10  bales  blankets, 

Navy. 

27  cases, 

Vessel's  acc"t 


Commis.^ary. 
I'rivate  acc't. 


Q   M. 


Me.lic.tl. 

B.  Conscrip. 
^-.Navy 


Commissary. 

N.  andM. 

Navv. 

Ueti.  »Vh:tlng 

Commissary; 
Seixas. 

8.  Imp'g  Co. 

Ordnance, 


Medieal. 
Navy. 

«. and  M. 

Navy. 

Ordnance 


16 


Cargoes  received  from  abroad, .  on  Goveriuiient  Account:—  Coutinued. 


1Si64. 
Due.  4 


Uaui^ii, 


£aglaadvlm  Durm'da 


Carolin", 


K.  b»ie«  hlanVets, 

;j    "     cloth, 
lA    "     (laDDel, 
68  c.'igcs  k>not8, 

7    "    8t«ti»mery, 

2i«klS  Ik.  .Is, 
7     "     jiilk, 
26    *'     ttiuiuunlUou  pap^r, 
9  bales  " 

2  CKSi-si  fut-rcliiindisf, 
'<  bumlleii  H>i>i«t  Ifou, 
Ih  casks  li  coppt-T) 

4  bnadles  copper  bolU, 
*^  casks  L  tin, 

7    "    pig  lead, 

5  "    ijattpetie, 
7  capes  zinc, 

(i  cnf^a  metal , 
!'•  rolls  lead, 
10  hales  blimkcts, 
111 '  bundles  iron  ties, 


■\ti. 


vy. 


Very  respectfully, 


TROS.  L    BAYNE,  Lt.  Col. 


* 


17 


Carf^oes   received  from  abroad,  un  Government  Account,   from  25/// 
"  October,  1864  to  date,  1th  December.— Port  of  Charleston. 


1884. 
Nov.  4 


F*z, 


Julia, 


Nassau, 


Dec.  1 


Beatrice, 

(Destroye(\  Iiy  the 
enemy. ) 


Syren, 


Laurel, 
Druid, 
K^te  Greg 


I     ].30  barrels  besf, 
j      00  barrels  pork, 


1  cask  raspv, 

N.  aiKlM. 

85  kegs  horse  sbois, 

" 

10    '■     harseshoe  aails, 

" 

'i  casks  spades, 

Enttineer. 

75  cases  shoes, 

«i.  M. 

100  tierces  beef, 

Navy. 

6  bales  bagging, 

Seixas. 

2  bales  shirts. 

Q.  M. 

25    •'      blankets. 

••            . 

U     "      cleths, 

" 

2    "       caps. 

" 

1  case  thread. 

" 

40  cases  shoes. 

" 

1  V,ox  Look-, 

" 

:  'liles. 

'' 

.   plaster. 

;  Ic  paper, 

71  barrels  beef, 

g'l  Vi.IlT'  I--  pr.rK. 

•Jl  .                                 : 

Navy. 

'iW                              ■   i   ■     , 

,lohn  Seixas 

Medical. 

i;  r:,<H<  oX'V-; 

Engineer. 

4  cases    do. 

3'.i  kegs  horse  shoe  nails, 

N.andM. 

1  case  liisrauth. 

Medical. 

67  barrels  alcohol. 

C»  boxes  tin  plate, 

" 

5  carboys  acid, 

Navy. 

1  box          do. 

" 

:'.  casks  copper, 

(( 

7  cases  stationery, 

B.  Conscrip 

In  ballast. 

• 
50  barrels  beef. 

• 

Navy. 


r  S(o 


p6Rmali(:64 

pH  8.5 


